Interesting article about Oil

wanghong

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5 F) W" i2 A5 d1 K! N% DBelow is an Interesting article I found, which says that.....Do not
! G4 N% q. C7 V9 y+ W$ r- b8 Vexpect much from Crude Oil producers and future is not with the
companies producing Jet fuels but Biofuels. Also no wonder if some of
7 {" b7 x7 T6 I  z3 u- m$ vthese oil producer will go bankrupt or out of the business even if
% i! K4 d$ T* Mcrude prices improves. This implies also to good names such as Shell,
- \4 S0 b1 u0 ~$ P8 y9 K7 AEXXON, BG, BP, Cheveron ....xyz.. oils

/ u& p: w2 }8 Q' PRecently OPEC reduced crude oil production twice over just a few
# I" l2 \5 n* C: }/ L8 Lmonths. There are three wars going on in Gaza, Iraq and Afghandistan.
A year ago these things would have spiked the price of crude oil by at
least $50.00 per barrel. Today, oil price declined by a record amount.


There are several reasons the price of oil is decreasing in the face
; [- @9 u0 E% o' |of so much news. These reasons are:


1. New oil has been found in Canada, Montana, North & South Dakota and
in the ocean near Brazil. Each of these oil fields has more oil than
) A! v5 B3 E$ p3 o( nArabia.

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2. New natural gas has been found in Pennsylvania and West Virginia.
This is the largest find in North America.


1 }8 d2 m) J  v; d3. New methods of injecting CO2 and surfactants into oil wells is
3 J- E% n% q+ j( ?being used to double their output.
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' k3 S' U7 p; F( M" l. L4. Production of bio-fuels is beginning to reach critical mass. Bio
+ \9 ]; `0 {( c5 ofuel is being produced from many plants and algae. The production
6 X, G8 w7 G# q, |1 O! r( U" Epotential per acre in some cases is astounding. Many countries are
racing to produce bio fuels.


5. Virtually every restaurant in the US and all food processing plants
8 m: R' l# M5 L3 S  I! m; v! M  `are now selling their used oil to bio-diesel producers. Every pork,
" m0 c; O3 Y. o' S- Ncattle, turkey and chicken processing plant will soon sell their fat
to bio-diesel producers. One pork processing plant in Oklahoma is
. _7 o2 v+ [- W% N9 ]; |producing 30,000 gallons of bio-diesel per day from pork fat.
2 p% n2 w  d0 N+ B

4 H, Q1 D, `2 E# a; z6. There are 99 nuclear reactors in various stages of planning and
6 Y- _2 G! _+ R# q& |construction around the world at this time. Several hundred more are
3 G+ s" @  y; \( sexpected to be built in the future. Much of the energy they produce
will replace oil.
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7. Every company in any form of transportaion business is replacing
older equipment such as trucks, airplanes, train engines, ships, etc.
7 G* G1 Z' o$ L9 w5 N' V/ awith new more fuel efficient equipment. Airlines and railway companies
are experiencing 20% to 25% better fuel econony with the new
) n- F- H9 Q' ]4 a. b3 d+ fequipment.
+ C. Y/ w+ v9 {8 v) [  o

4 J, q6 l% H$ r+ B, RAirlines are flying airplanes with bio-fuel. They are finding the bio-
( ~. t, H0 N' l. P/ W. R9 N) v, z3 Dfuel is cleaner and performs better than jet fuel.
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8. Cities and counties throughout the US are selling the rights to
0 ?9 W0 R. ?8 L, d. c' t# hcapture methane gas from landfills. This is a huge source of gas
6 Z% ]( T0 |# @; O" P& x1 Xavailable at very little cost or risk. The gas is displacing crude
oil.


9. Coal is being transformed into a clean burning liquid fuel. The CO2
produced as a byproduct is sold to oil companies for injection into
oil wells.
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10. Solar, wind and ocean energy is displacing oil as an energy
source. Three new wind turbines are being erected every day in the US.
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2 X4 b' V0 U, q- }8 hEach of the above by itself will not make a large difference in the
price of crude oil but the sum of all of them together is world
: [) H8 z$ M, ]  F: ]changing. The important thing is that OPEC no longer has the ability
* Z' f  G) T2 z# {# ^2 Hto control oil prices.
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& E) w0 F4 D9 R+ jWith the above scenario, I still believe that there are under
: Q  m% b# o- E# t) j+ Z4 ^performed OIL companies and probably they are yet to get the justified
( X4 P7 |$ h! A, e2 k3 Rvalue .....
1 X6 E; l- C% @$ J1 VIAE- Ithaca , EPL Energy Partners Ltd, Opti etc ...
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The above articles are from WSJ .............PUBLISHED ON 9TH JAN
9 v6 f: ~" H  D- w  W: K2009 ... FYI-Only